Small cap stocks, as the name suggests, have the lowest market value when compared to their counterparts. These are small companies with a market capitalization of up to INR 250 and the potential to grow rapidly in the future. Investors who are willing to commit to the long term and are unconcerned about current dividends, as well as those who are willing to hold their ground during price volatility, can make significant gains in the future.

As an investor, you can purchase these stocks when they are available at a low price during the company's early stages. Because the company is new, it is impossible to predict how it will perform in the market. Because these small cap companies are new, they are highly volatile, and their growth has a significant impact on the company's value and revenue.

Small-cap stocks are shares of companies with a relatively small market capitalization, typically ranging from $300 million to $2 billion. The "cap" in small-cap refers to market capitalization, calculated by multiplying the company's share price by its total outstanding shares.

Small-cap companies are often younger, growing businesses that may have high potential for expansion, but they also carry higher risk compared to larger, well-established companies (like large-cap or blue-chip stocks). These stocks can be more volatile due to lower liquidity, meaning they can experience significant price swings.

Investors are often attracted to small-cap stocks for their growth potential, but they must also be prepared for increased risk and the possibility of greater losses in uncertain market conditions.